Delhi VAT Act, 2004 | Updated October 2026
Delhi VAT Rates and Schedules: Applicable Goods, Works Contracts and GST
The Delhi Value Added Tax (DVAT) Act, 2004 historically imposed different tax rates on goods listed in its schedules. Since 1 July 2017, most supplies of goods and works-contract services have been governed by GST rather than DVAT. Delhi VAT continues to matter for specified goods outside GST and for assessment, returns, disputes, refunds and liabilities relating to earlier VAT periods. Consequently, the old schedule rates must not be used as a universal current-rate chart.
Legal basis: Sections 3 and 4 of the DVAT Act
Section 3 (imposition of tax) establishes a registered dealer's, or a dealer required to register's, liability to tax on taxable sales, subject to the Act. Section 4 (rates of tax) provides the rate framework and references schedules specifying exempt or differently taxed goods. The statutory provisions and schedules have been amended over time, and GST has significantly restricted their practical application.
DVAT schedules and rates in the earlier system
| Classification | Rate shown in the earlier article | How to interpret it now |
|---|---|---|
| First Schedule | Exempt | Specified exempt goods under the relevant historical version of the Act; check amendments and GST treatment. |
| Second Schedule | 1% | Historic schedule rate, not a blanket current rate. |
| Third Schedule | 5% | Historic schedule rate, not a blanket current rate. |
| Fourth Schedule | 20% | Historic schedule rate; special rates and later notifications may override it. |
| Other goods not covered by listed schedules | 12.5% | Historic residual rate; later amendments and GST treatment must be considered. |
| Goods involved in execution of works contracts | 12.5% | Historical treatment; most post-GST works contracts involving immovable property are treated as services under GST. |
These figures preserve the classifications in the earlier article for historical reference only. They are not represented as rates in force for all goods in 2026.
Which goods may still attract Delhi VAT?
After the introduction of GST, the principal categories requiring separate consideration under the VAT/excise framework include petrol (motor spirit), high-speed diesel, petroleum crude, natural gas, aviation turbine fuel and alcoholic liquor for human consumption, subject to the applicable constitutional and statutory rules. The tax treatment of a particular commodity must be verified independently; for example, certain petroleum products or uses can be treated differently.
Rates for petrol and diesel can include percentage-based VAT and other components or conditions. The Petroleum Planning & Analysis Cell's official State-wise rate table is useful for checking the latest published petroleum rates. For liquor, consult the Delhi Trade and Taxes Department's current VAT notifications and the applicable excise framework rather than assuming the historic Fourth Schedule rate of 20%.
What rate applies to contractors and works contracts?
A works contract generally involves execution of construction, installation, repair or similar work, with transfer of property in goods in performing the contract. Before GST, the goods component could attract DVAT under the applicable works-contract provisions and rules, including prescribed deductions or composition arrangements where available.
Under GST, works contracts relating to immovable property are classified as supplies of services by paragraph 6(a) of Schedule II to the Central Goods and Services Tax Act, 2017. The correct GST rate depends on the specific service, recipient, project, exemptions and notifications in force. There is no universal current 12.5% DVAT rate for contractors. For pre-1 July 2017 contracts and assessments, apply the law and notifications effective for the relevant period.
How to determine the applicable rate
- Identify the exact commodity or nature of the contract and the date of supply.
- Check whether GST applies or the transaction remains subject to VAT/excise law.
- If DVAT applies, examine Section 4, the relevant schedule entry and later rate notifications.
- Verify special exemptions, composition schemes, documentary requirements and applicable additional levies.
- For historical periods, use the legislation and rate notification that was effective on the transaction date, not the present-day rate.
Official law and rate resources
- Delhi Department of Trade and Taxes - official department site and current portal notices.
- Delhi tax notifications - official rate changes and related notifications.
- Delhi VAT portal - current DVAT portal address as announced by the department.
- Delhi VAT Act, 2004 (historical consolidated 2014 PDF) - consult together with later amendments.
- CBIC GST - central GST statutes, notifications and guidance.
- PPAC petroleum VAT rates - published State-wise fuel tax data.
Frequently asked questions
Is VAT still applicable in Delhi?
Yes, to certain goods outside GST and to relevant legacy periods. Most ordinary goods and works-contract supplies fall under GST.
Are Delhi VAT rates 1%, 5%, 12.5% and 20% today?
These were rates in the earlier schedule-based framework. They cannot be applied to all present-day sales; the commodity, effective date, amendments and current notifications control.
Is DVAT charged on building works contracts in 2026?
Ordinarily, GST rather than DVAT governs current works contracts involving immovable property. Historical DVAT liabilities may still arise for earlier transactions.
Information is general and should be checked against the current legislation and notifications for the specific transaction.